Praveenkumar Pol KMF Project

Karnataka Milk Federation, Dharwad
Executive Summary
KARNATAKA COOPERATIVE MILK PRODUCERS' FEDERATION LIMITED (KMF)

KMF is the Apex Body in Karnataka representing Dairy Farmers' Co-operatives. It is the
third largest dairy co-operative amongst the dairy cooperatives in the country. In South India it
stands first in terms of procurement as well as sales. One of the core functions of the Federation
is marketing of Milk and Milk Products. The Brand ' ' is the household name for Pure
and Fresh milk and milk products.
KMF has 13 Milk Unions throughout the State which procure milk from Primary Dairy
Cooperative Societies (DCS) and distribute milk to the consumers in various Towns/Cities/Rural
markets in Karnataka.
The first ever World Bank funded Dairy Development Program in the country started in
Karnataka with the organization of Village Level Dairy Co-operatives in 1974. The AMUL
pattern of dairy co-operatives started functioning in Karnataka from 1974-75 with the financial
assistance from World Bank, Operation Flood II & III. The dairy co-operatives were established
under the ANAND pattern in a three tier structure with the Village Level Dairy Co-operatives
forming the base level, the District Level Milk Unions at the middle level to take care of the
procurement, processing and marketing of milk and the Karnataka Milk Federation as the Apex
Body to co-ordinate the growth of the sector at the State level.
Coordination of activities among the Unions and developing market for Milk and Milk
products is the responsibility of KMF. Marketing Milk in the respective jurisdiction is organized
by the respective Milk Unions. Surplus/deficit of liquid milk among the member Milk Unions is
monitored by the Federation. While the marketing of all the Milk Products is organized by KMF,
both within and outside the State, all the Milk and Milk products are sold under a common brand
name NANDINI.
Dharwad District Co-operative Milk Producers' Societies' Union Ltd
Kousali Institute of Management Studies, Dharwad. 1

The Union was established in the year 1986 under the Operation Flood II & III. The
Union also later took over in 1988 the Milk Products Factory with a drying capacity of 2.10 Lakh
Liters per day, earlier established by the Karnataka Milk Products Limited (Government of
Karnataka Undertaking).
The Dharwad Milk Union is Co-operative society among the 13 establishment, under
KMF. The Dharwad Milk Union (DMU) is one of the most modern plants in the country. It is
located in the spacious 25 acres of land, located in Lakamanahalli Industrial Area, adjacent to the
Nation Highway-4. It is patterned the AMUL Milk Dairy, Anand, Gujarat.
The Union covers the districts of Dharwad, Karwar, Haveri & Gadag, and has Chilling
Centres at Gadag,Haveri, Sirsi, Ron, Nargund, Hirekerur & Kumta with chilling capacity of 0.80
Lakh Liters Per Day.
The Union procures and sells on an average 0.68 Lakh Kgs per Day and 0.59 Lakh Liters
Per Day respectively. There are 7 Bulk Milk Coolers in the Union.
Project Details
PROJECT TITLE:
“CONSUMER PREFERENCE & BRAND AWARENESS TOWARDS
NANDINI MILK & milk PRODUCTS in Hubli-Dharwad cities”
OBJECTIVE:
Consumers are attracted through competitively other milk brands. So main objective of
the study is to know the consumer preference in choosing the milk and there product, and know
the Nandini brand awareness about the Nandini Milk and other various kind of Nandini Milk
Product in the consumer mind in the particular geographical area at Hubli-Dharwad cities.
To analyze the consumer attitudes and perception towards price, quality, hygiene, long
shelf life and Brand name..
To study what kind of family member group and income people are most interested to
consume Nandini milk and their product.
To find out what is the present level of loyal consumer of Nandini milk.
To know consumer preference about the Nandini.
To find out the satisfaction level of Nandini product availability and pricing
To find out whether advertisement help the consumer in buying decision.
I have carried out my studies by personally interviewing the customers from all the areas
of Hubli and Dharwad. The sample size was 100. I had set the questionnaire based on the above
said objectives very carefully.
FINDINGS IN THE ORGANIZATION:

Nandini products have a good brand image in the Market.
 Pricing strategy of Nandini is appreciated by its customers.
 Nandini is started with customer contact programs in order to get first hand feedback
from its customer and also to improve its products.
 The various private brands have been trying to give a really tough competition by giving
the agents high trade margins.
 DMU has a waste area of operation which is geographically spread and which leads high
procurement and distribution charges.
 Lack of consumer awareness about the wide range of products sold.

 The dealers wants only more commission because they also suffer same problem with
other brands also but they complains with us only.
 The organization is playing an important role in developing the economic viability of
the villages.
 The powder making plant has taken an vital role in Dharwad Milk Union.
SUGGESTIONS
➢ The retailers and dealers should be satisfied with commission and schemes so that
they can improve the sales in the market.
➢ The company should come up with new products with different varieties and
attributes to attract the customers.
➢ To advertise about all the products in the market.
➢ The organization can build good infrastructure better than these like maintaining
good garden etc.
➢ If the company wants to restart the production of “Double Toned Milk”, firstly it
has to provide sufficient knowledge and awareness about the attributes of
products as compared to others.
Milk: India's Number One Farm Commodity

Milk is India's number one farm commodity in terms of its contribution to the national
economy. In 1994-95, the value of its output based on producer price was Rs. 500,051 millions,
exceeding that from paddy (rice). Notwithstanding its top place and the many benefits it bestows
on the lower rungs of the rural society, dairying has not received due attention from planners,
economists, social scientists and others. For example, the investment in dairying made under the
five-year plans is not commensurate with its output. Consequently, its potential has not been
adequately tapped.
Milk contains many different nutrients
Milk and milk products contain a good balance of protein, fat and carbohydrate and are a
very important source of essential nutrients including:
➢ Calcium
➢ Riboflavin
➢ Phosphorous
➢ Vitamins A, D and B12
➢ Pantothenic acid.
Milk products also contain ‘high quality proteins’ that are well suited to human needs.
Milk proteins increase the value of poorer quality cereal and vegetable proteins in the diet by
providing the amino acids these proteins lack.
As a food, milk serves the following broad purposes: (a) growth, (b) reproduction, (c)
supply of energy, (d) maintenance and repair and (e) appetite satisfaction. The requirements of
these categories vary with the individual, and in some instances not all the stated functions of the
food need to be served, e.g. adults no longer require food for growth whereas infants do. The
functions of a food are served specifically through the various nutritionally important
components, comprising proteins, carbohydrates, lipids, minerals, vitamins and water.
Fat content is closely followed by milk proteins at about 3.4%. Milk proteins in turn are
subdivided into casein, comprising approximately 76–80% of the total milk proteins, and the
whey proteins, comprising roughly 20–24%.
Modified milks explained:
There are many types of milks on the market, including:

• Full cream – full cream milk contains around four per cent fat and is a source of vitamins
A and D. For children up to the age of two years, full cream milk is recommended.
• Reduced fat – expect around half as much fat in reduced fat milk as full cream. Children
over the age of two years can drink reduced fat milk.
• Skim milk – contains less than one per cent fat. Children older than five years can safely
consume skim milk. Both reduced fat and skim milk have vitamin A and D added to
replace the naturally occurring vitamins that are reduced when the fat is removed.
• Calcium enriched – generally milks that are enriched with extra calcium are also fat
reduced. A 250ml glass of milk contains 408–500mg of calcium.
• Flavored – these milks can either be full cream or reduced fat. However, most varieties
contain a lot of sugar.
• UHT (ultra-high temperature-treated) milk – is treated with very high heat to allow milk
to be stored for long periods.
Pasteurization milk:

Pasteurization is a process in which the milk is heated till 75 degree Celsius and the milk
is exposed to this temperature for about 16 seconds and then the milk is suddenly cooled to 4
degree Celsius. This process is carried out to destroy all the pathogenic bacteria that are present
in raw milk. Pasteurization is a very costly process and it requires the installation of very costly
machines.
Unpasteurized milk:
Most milk on the market is pasteurized (heat treated then cooled). Milk that hasn’t been
through this process should be avoided. While pasteurization reduces the amount of some
vitamins, such as vitamin C, it also kills bacteria. Unpasteurized milk is a health hazard because
of the dangers of bacterial diseases.
NUTRITIVE VALUE OF MILK

(Values are for 100g)
Buffalo Cow
Moisture (g) 81.0 87.5
Protein (g) 4.3 3.2
Minerals (g) 0.8 0.8
Carbohydrates (g) 5.0 4.4
Energy (kilocalories) 117.0 67.0
Calcium (mg) 210.00 120.0
Phosphorous (mg) 130.0 90.0
Iron (mg) 0.2 0.2
Carotene (ug) 160.0 174.0
Thiamine (mg) 0.04 0.05
Riboflavin (mg) 0.1 0.19

Niacin (mg) 0.1 0.1

Vitamin B12 (ug) 0.1 0.1
Folic acid (ug)
Total 3.3 5.6
Free 5.6 8.5
Vitamin C (mg) 1.0 2.0
Sodium (mg) 19.0 73.0
Potassium (mg) 90.0 140.0
Fat (g) 7.97 3.78
Total fatty acids (g) 7.18 3.57
Linoleic acid (g) 0.08 0.09
Linolenic acid (g) 0.09 0.06
Total phospholipids (g) 0.03 0.035
Cholesterol (g) 0.014 0.012
India: World's Largest Milk Producer

India has become the world's No. 1 milk producing country, with output in 1999-200
(marketing year ending March 2000) forecasted at 78 million tones. United States, where the
milk production is anticipated to grow only marginally at 71 million tones, occupied the top slot
till 1997. In the year 1997, India's milk production was on par with the U.S. at 71 million tones.
The world milk production in 1998 at 557 million tones would continue the steady progress in
recent years (see Table 1). Furthermore, the annual rate of growth in milk production in India is
between 5-6 per cent, against the worlds at 1 per cent. The steep rise in the growth pattern has
been attributed to a sustained expansion in domestic demand, although per capita consumption is
modest - at 70 kg of milk equivalent.
Annual Milk Production has trebled
India's annual milk production has more than trebled in the last 30 years, rising from 21
million tons in 1968 to an anticipated 80 million tons in 2001. This rapid growth and
modernization is largely credited to the contribution of dairy cooperatives, under the Operation
Flood (OF) Project, assisted by many multi-lateral agencies, including the European Union, the
World Bank, FAO and WFP (World Food Program). In the Indian context of poverty and
malnutrition, milk has a special role to play for its many nutritional advantages as well as
providing supplementary income to some 70 million farmers in over 500,000 remote villages.
Table 1. World's Top Milk Producers.
1998 1997
Countries 1996
India 74 71 68
United States 71 71 70
Russian Federation 33 34 36
Pakistan 22 21 20
Brazil 22 21 19
Ukraine 14 15 16
Poland 12 12 11
New Zealand 12 11 10
Australia 10 9 9
EC 125 125 125
World (includes others) 557 549 542
The origin of Co-operative Milk Producers societies:
The mighty Ganges at it's origin is but a tiny stream in the Gangotri ranges of the
Himalayas. Similar is the story of Amul which inspired 'Operation Flood' and heralded the
'White Revolution' in India. It began with two village cooperatives and 250 liters of milk per day,
nothing but a trickle compared to the flood it has become today. Today Amul collects processes
and distributes over a million liters of milk and milk products per day, during the peak, on behalf
of more than a thousand village cooperatives owned by half a million farmer members.
Achievements of dairy co-operatives:
A commitment to help rural producers help themselves has guided the Dairy Board's
work for more than 30 years. This commitment has been rewarded with achievements made by
cooperative dairies in milk production, employment generation, and per capita availability of
milk, foreign exchange savings and increased farmer incomes.
The start of a revolution:

The revolution started as awareness among the farmers that grew and matured into a
protest movement and the determination to liberate them. Over four decades ago, the life of a
farmer in Kaira District was very much like that of his counterpart anywhere else in India. His
income was derived almost entirely from seasonal crops. The income from milch buffaloes was
undependable. The marketing and distribution system for the milk was controlled by private
traders and middlemen. As milk is perishable, farmers were compelled to sell it for whatever
they were offered. Often, they had to sell cream and ghee at throwaway prices. In this situation,
the one who gained was the private trader. Gradually, the realization dawned on the farmers that
the exploitation by the trader could be checked only if marketed their milk themselves. In order
to do that they needed to form some sort of an organization. This realization is what led to the
establishment of the Kaira District Cooperative Milk Producers' Union Limited (popularly
known as Amul) which was formally registered on December 14, 1946.
NATIONAL DAIRY DEVELOPMENT BOARD: -

History:
The NDDB was founded to replace exploitation with empowerment, tradition with
Modernity, Stagnation with growth, transforming dairy into and instrument for the development
of Indian’s rural people.
The NDDB was established in 1965; the board is registered under the Societies
Registration Act and the public Trust Act, fulfilling the desire of the Prime Minister of India –
the late Lal Bhahaddur Shastri to extend the success of the Kaira Co-operative Milk producers
union (AMUL ) TO OTHER PARTS OF India. Dr Vergese Kurien was the founder chairman.
The success combined the wisdom & energy of farmers with professional management to
successful capture liquid milk and milk product markets while supporting farmer’s investment
with inputs and services.
The Growth
NDDB began its operations with the mission of making dairying a vehicle to a better
future for millions of gross roots milk producers. The mission archived helped to launce
‘’Operation Flood’’, a programmed extending over 26 years and with the help of World Bank
Loan India become the world’s largest milk producing country. As per March 2001 India’s
96000 Dairy Co-operative are integrated thorough a three Tier Cc-operative structure. The
Anand pattern which is owned by more than 10 million formers procures an average of 1605
million liters of milk every day. The milk is processed and marketed by 170 milk producers’ co-
operative unions which, in turn own 15 state co-operative milk marketing federation. Since its
establishment the dairy development board has planned and spearheaded India’s Dairy
programmer by placing dairy development in the hands of milk producers and the professionals
they employ to manage their co-operatives. In addition, NDDB also promotes other commodity
based co-operative, allied industries and veterinary biologically on an intensive and nationwide
basis.
Objectives of NDDB:
➢ To sponsor, promote, manage, acquire, construct or control any plant or

work, which promote projects of general public utility relation to
dairying.
➢ To make information available on request to technical services to
increase production of Milk.
➢ To prepare initial feasibility studies of dairying and other dairy related
projects and undertake subsequent designing planning and start up
those projects.
➢ To undertake research and development programmed related to
production and marketing of milk and milk products.
➢ To provide assistance for exchange of information to other international
agencies.
Services rendered by NDDB:
NDDB provide the following services.
. Planning dairy and rural development projects.

. Organization of farmer co-operative societies.
. Setting up of dairy and cattle feed plants.
. Manpower planning and training.
. Applied research and development.
. Implementation of milk production enchantment programmers.
KARNATAKA COOPERATIVE MILK PRODUCERS' FEDERATION

LIMITED (KMF)
The very much impressed by the successes of AMUL dairy. With this spirit
in Karnataka in the year 1974 KARNATAKA MILK FEDERATION starts and works all over
Karnataka as per the rules and regulations themes and adopted this as the model and starts its
operation on this and its very much success on this field.
The first dairy in Karnataka was started in Kudige in Kodagu district in 1955, Further in
June 1974; an integrated project was launched in Karnataka to restructure and reorganize the
dairy industry on the co-operative principle and to lay foundation for a new direction in dairy
development.
In 1975, the World Bank aided dairy development was initiated. The present Karnataka
Milk Federation (KMF) came into existence in 1984-as a result of merging of Karnataka Dairy
Development Co-operation, small co-operatives and Karnataka Milk Production Development
and loose vendors.
And in the year 1986 the Karnataka milk federation bifurcated to many parts to work
many more towards customers and formers needs and wants and it is de-centralized and regional
authority is be given to the managing directors and marketing managers and forms and co-
operative societies union to give suggestions to this management.
KMF is the Apex Body in Karnataka representing Dairy Farmers' Co-operatives. It is the
third largest dairy co-operative amongst the dairy cooperatives in the country. In South India it
stands first in terms of procurement as well as sales. One of the core functions of the Federation
is marketing of Milk and Milk Products. The Brand ' ' is the household name for Pure
and Fresh milk and milk products.
KMF has 13 Milk Unions throughout the State which procure milk from Primary Dairy
Cooperative Societies (DCS) and distribute milk to the consumers in various Towns/Cities/Rural
markets in Karnataka.
The first ever World Bank funded Dairy Development Program in the country started in
Karnataka with the organization of Village Level Dairy Co-operatives in 1974. The AMUL
pattern of dairy co-operatives started functioning in Karnataka from 1974-75 with the financial
assistance from World Bank, Operation Flood II & III. The dairy co-operatives were established
under the ANAND pattern in a three tier structure with the Village Level Dairy Co-operatives
forming the base level, the District Level Milk Unions at the middle level to take care of the
procurement, processing and marketing of milk and the Karnataka Milk Federation as the Apex
Body to co-ordinate the growth of the sector at the State level.
Coordination of activities among the Unions and developing market for Milk and Milk
products is the responsibility of KMF. Marketing Milk in the respective jurisdiction is organized
by the respective Milk Unions. Surplus/deficit of liquid milk among the member Milk Unions is
monitored by the Federation. While the marketing of all the Milk Products is organized by KMF,

both within and outside the State, all the Milk and Milk products are sold under a common brand
name NANDINI.
At the end of the March 1998, the network of 8023 Diary Co-operative Societies (DCS)
have been established which are spread over 166 taluks of the total 175 taluks in all 27 districts
of Karnataka. There are 13 Milk Unions and Dharwad Milk Union (DMU) is one among them.
There are 35 Chilling centers, 3 Farm coolers, 15 Liquid milk plants and 2 Product dairies for
chilling, processing, conservation and marketing of milk. To supply cattle feed there are 4 cattle
feed plants.
To impart training, institutes at Bangalore and

regional training institutes at Dharwad and Gulbarga are
functioning. Three nitrogen plants (2 plants of 25 CPM and 1
plant of 5 CPM) are been set-up to supply nitrogen, which is
used for Refrigeration purpose. Three diagnostic centers have
been set-up for monitoring diseases: three fodder farms at
Rajkunte, Kuttanahalli and Kodagu have been set-up to
supply good quality of fodder and seed production farm at
Shahpur has been set-up.
The federation giving details of the latest technology in dairy industry etc is published
‘’Ksheer Sagar’’ magazine monthly.
KMF is a co-operative apex body in the state of Karnataka for representing dairy
organizations and also implementing dairy development activities to achieve the following
objectives.
➢ Providing assured and remunerative market for all the milk produced by
the farmer members.
➢ Providing hygienic milk to urban consumers.
➢ To build village level institutions in co-operative sector to manage the
dairy activities.
➢ To ensure provision of milk production inputs, processing facilities and
dissemination of know-how.
➢ To facilitate rural development by providing opportunities for self-
employment at village level, preventing migration to urban areas, etc.

THE MILK UNION:
Milk union is a channel of District Co-Operative Societies in organized form for milk
procurement. The procurement route is linked to chilling center or a dairy. Dharwad Milk Union
is one of such Milk Unions. It is the middle tier of the complex co-operative organization
network. Unions are formed by federating the societies in locating geographical area. The milk
unions are organized to make them economically viable and the jurisdiction extends from one
district to 3 Districts. There are 5 Milk Unions who’s Jurisdiction covers a single district, 4
Unions COVER 2 District, each 3 Unions cover 3 districts and one Union’s territory extends to 4
District. All Unions own their own Milk Processing Facilities.
UNITS OF KARNATAKA MILK FEDERATION:
KMF has the following Units functioning directly under its control:
1. Mother Dairy, Yelahanka, Bangaloru.

2. Nandini Milk products ,KMF complex, Bangaloru.
3. Cattle feed plants at Rajanukunte/ Gubbi/ Dharwad/ Hasana.
4. Nandini Sperm Station (Formerly know as Bull Breeding Farm and Frozen
semen Bank)at Hessaraghatta.
5. Pouch Film Plant at Munnekolalu, Marathhalli.
6. Center Training Institute af KMF Complex, Bangloru.
CO-0PRATIVE MILK PRODUCERS SOCITIES UNIONS:
1. Bangaloru Milk Union

2. Belgaum Milk Union
3. Bellary Milk Union
4. Bijapur Milk Union
5. Dakshin kannada Milk Union
6. Dharwad Milk Union
7. Gulbarga Milk Union
8. Hassana Milk Union
9. Kolar Milk Union

10.Mandya Milk Union
11.Mysore Milk Union
12.Shimoga Milk Union
13.Tumakur Milk Union
FUNCTIONS:
These Unions help to organize new Primary Dairy Co-operative Societies. The Union
also helps in managing these DCS by assisting in accounts, purchase, process and marketing
liquid milk. The Union helps in providing all the input facilities to DCS and channelizes the
dairy farmers through DCS. The Union provides the following facilities.
➢ Co-ordination of activities between the unions.

➢ Providing Balanced Cattle Feed.
➢ Providing Animal Health Care.
➢ Developing the markets for the increasing in milk production.
➢ Providing Artificial Insemination facility for breed improvement.
➢ To make the brand “ ”as a house hold name.
➢ Excellence in quality is to be maintained to lay a solid foundation for wide spared
acceptance of “Nandini” products.
➢ To increase the market share of “Nandini”.
➢ Providing Training for breeding, feeding management.
OBJECTIVE :
➢ To build primary dairy cooperative societies to manage the dairy activities.
➢ To provide assured remunerative market to the milk produced by the
producer members.
➢ To supply quality milk and milk products to urban consumers.
➢ To ensure provision of milk production inputs, processing facilities and
dissemination of know-how.
➢ To facilitate rural development by providing opportunities for self employment at
village level, preventing migration to urban areas, introducing cash economy and
opportunity for steady income.

MILK FEDERATION:
The main objective of the federation is to help in formation of Milk Unions through the
state and thus forming the state level apes organization. The Federation implements all the
project activates. After the project activities are accomplished the federation aims at formulating
Marketing strategies in marketing the Milk and Milk Product. The Karnataka Milk Federation
which was setup in 1984 has the following functions:
➢ The foremost function of KMF was to co-ordinate the activities between the Union
and also in making market available so that production increases
➢ The Federation also manages surpluses and deficiencies of liquid of milk among the
milk union and help in disposing milk and milk product at reasonable price
➢ The Federation also manages to market the milk and milk products outside the state.
➢ Provides Balanced cattle feed, mineral mixture, frozen semen straws and liquid
nitrogen are produced and distributed to Unions Excellence in quality is maintained to
lay a solid foundation for widespread acceptance of the milk and milk products.
Training and developing senior managerial personnel, acquiring and applying all recent
technologies, prescribing quality guidelines and norms.
MEMBERS IN DISTRICT CO-OPERATIVE SOCIETY:
BUSINESS STRATEGY OF NANDINI:

The federation is striving to excel on three critical factors of business to give
remunerative price to producers and to give value for money to customers –
QUALITY, COST & DELIVERY
QUALITY - Fresh and pure milk “Quality Excellence from cow to consumer”.
COST - Least selling price for market milk in the country Minimum price spread between
the purchase price and selling.
PRICE - Remunerative price to the producers.
DELIVERY - Prompt & assured delivery at any time and any place. There are days in the
cities of Karnataka, when there is no water or power supply in the homes of
consumers, but there are no days without supply of NANDINI milk.
VETERINARY SERVICES:
➢ Genetic up-gradation of livestock

➢ Control of Diseases, Mastitis control, regular vaccination, etc.

➢ Veterinary health cover to all animals – Regular and Emergency Services

➢ Artificial Insemination – Initiated Cluster AI facilities During 2005-06, no. of AI
done 13.3 lakhs when compared to 11.4 lakhs AI done in 2003-04-Increase of
16.5%
➢ Embryo transfer technology to upgrade cattle wealth.
FEEDS AND FODDER:
➢ Fodder crop seeds supplied to farmers.

➢ Urea treatment of straws & Urea Molasses Blocks.
➢ Four cattle feed plants – all ISO certified and operating with more than 100%
capacity utilization.
➢ The Federation has sold 1,54,249 MTs of cattle feed during 2004-05.
CLEAN MILK PRODUCTION:
➢ Training producers on hygienic management, milking methods and handling of

milk.
➢ Milk Producers provided with SS pails, Saff kit, etc.
➢ Electronic Weighing Machines, Automatic Milk Collection Units and Bulk Milk
Coolers in DCS.
➢ Community Milking Parlors
➢ SS Cans and Milk Collection Materials.
➢ CMP Promotional Materials and documentary Films.
CLEAN MILK PRODUCTION IMPLEMENTED:
➢ Number of Milk Unions involved – 11

➢ Number of districts covered – 12
➢ Number of Milking parlors – 94 (5,785 Number of animals milked twice in a day
– Total 55,000 liters of milk collected per day)
➢ Number of BMCs established – 112 (capacity of 2.19 LLPD) with 24 BMC
Tanker routes in operation.
➢ Quality of milk collected from BMC centers with an MBRT time from 5-6 hrs and
SPC count <5,00,000.
➢ Under implementation - with GOI assistance 109 BMCs (2.2 LLPD capacity) will
be added by March 2006.

MILK PROCUREMENT AND SALES:
*2010 is projected
THE PRODUCTS OF KMF:
Milk Toned Milk, Full Cream Milk, Good Life, Standardized

Milk,
Flavored Milk, Smart, Slim, Butter Milk,
Homogenized Toned Milk,
Milk Products Ghee, Badam Powder, Butter,
Pannier, Curds, Peda, Cheese,
Ice Cream, Gulab jamoon mix,
Khova, CashewBurfi,
The growth over the years and activities undertaken by KMF is summarized
briefly hereunder:
1976-77 2009-2010( Up to
Jul'09)
Dairy Co- NO’s 416 11542
operatives
Membership NO’s 37000 2018788
Milk Procurement Kgs/day 50000 3668314 / Peak
Proc.40.41 LKPD
Milk Sales Lts/day 95050 2377364 /
Curds:2.27LKPD
Cattle Feed Kgs/DCS 220 3046
Consumed
Daily Payment to Rs.Lakhs 0.90 449
Farmers
Turnover Rs.Crores 3135.00
PERSPECTIVE PLAN 2010:

The Operation Flood (OF) Programmed initiated by NDDB in 1970 was a
planned attempt to revive India's Dairy Industry from a premature stagnation. The
OF Programmed not only propelled the growth of dairy development in India, it
also helped India become the world's largest milk producer.
OF enhanced the incomes and quality of life for millions of India's dairy
farmers, most of them poor and many of them women. It has become India's
largest Dairy Development Programmed.
OF (1970-1996) created a strong foundation to transform India's dairy sector
into a vibrant business activity. It paved the way to take up new initiatives and
create new conditions to firm up India's world leadership in milk production. The
new challenge for the Dairy Industry was to explore ways to emerge stronger using
the network created under OF. The response is Perspective 2010, a plan that
attempts to take the dairy cooperative movement to its highest potential.
Perspective 2010 focuses on four key areas. These include Strengthening
Cooperatives Business, Production Enhancement, Assuring Quality and creating a
National Information Network. The State Milk Marketing Federations and the Milk
Producers' Cooperative Unions, the architects and key beneficiaries have identified
the thrust areas. The plan is designed keeping at helm the benefit to farmers at
large. NDDB facilitated the planning process and will provide technical support
and need-based finance for implementing
Increase liquid milk procurement by cooperatives to 33 percent (488 lakh
kilograms per day) of the marketable surplus in Operation Flood areas, constituting
80% of the national milk produced (i.e. Quadruple liquid milk procurement by year
2010)
Increase liquid milk sales to 365 lakh kilograms per day, more than 60
percent of the market shares in metros, and on average of close to 50 percent in the
Class I cities served by cooperatives (i.e. Treble fluid milk marketing by year
2010)
After the closure of OF-III project. Government of Karnataka and NDDB
(National Dairy Development Board) signed an MOU during February 2000, for

further strengthening the Dairy Development Activities in Karnataka with an

outlay of Rs.250 Crores. Consequent to the announcement of new lending terms
and conditions by NDDB through an evolution of an action plan - Perspective 2010
to enable the dairy cooperatives to face the challenges of the increased demand for
milk and milk products by focusing efforts in the four major thrust areas of
Strengthening the Cooperatives. Enhancing Productivity, Managing Quality and
building a National Information Network, plans are under implementation. The 4
Milk Unions viz., Dharwad, Tumkur, Bijapur and Gulbarga that were having
accumulated losses were included for rehabilitation programmers under the
Centrally Sponsored Scheme "Assistance to Cooperatives" which is also under
implementation.
STRATEGY:
 Identify and address quality related problem at every stage from the
producer at the village co-operative, to the dairy plant and the process
of final delivery to the consumer.
 Facilitate improvement of hygiene, sanitation, food safety and
operating efficiency in the dairy plants and sensitize dairy personnel
to product quality aspects as per international standards
FUTURE VISION:
To consolidate the gains of Dairying achieved in the state of Karnataka and
with a view of to efficiently chill, process and market ever developing and
increasing milk procurement with an utmost emphasis on the Quality and in the
process conserve the socio-economic interests of rural milk producers, the Govt. of
Karnataka through KMF has proposed to undertake several projects with financial
and technical support of NDDB for which an MOU was signed between Govt. of
Karnataka and NDDB on 10th Nov. 2004.
DHARWAD MILK UNION:
Dharwad District Co-operative Milk

Producers' Societies' Union Ltd

The Union was established in the year 1986 under the Operation Flood II & III. The
Union also later took over in 1988 the Milk Products Factory with a drying capacity of 2.10 Lakh
Liters per day, earlier established by the Karnataka Milk Products Limited (Government of
Karnataka Undertaking).
The Dharwad Milk Union is Co-operative society among the 13 establishment, under
KMF. The Dharwad Milk Union (DMU) is one of the most modern plants in the country. It is
located in the spacious 25 acres of land, located in Lakamanahalli Industrial Area, adjacent to the
Nation Highway-4. It is patterned the AMUL Milk Dairy, Anand, Gujarat.
The Union covers the districts of Dharwad, Karwar, Haveri & Gadag, and has Chilling
Centres at Gadag,Haveri, Sirsi, Ron, Nargund, Hirekerur & Kumta with chilling capacity of 0.80
Lakh Liters Per Day.
The Union procures and sells on an average 0.68 Lakh Kgs per
Day and 0.59 Lakh Liters Per Day respectively. There are 7 Bulk Milk
Coolers in the Union.
Apart from selling milk, it sells pure buffalo milk & produces
very thick 250 gm Curds in mud pots specially designed for this
namely "KUDIKE MOSARU", the famous Dharwad Peda, Butter in
bulk as well as in retail packs and in 10 gm chipsets, Ghee, Skimmed
Milk Powder and Pannier.
A DMU group of experienced officers, appointed by the

Karnataka Milk Federation surveyed the whole of Dharwad districts
(includes two newly formed district Gadag and Haveri) and Uttar
Karnataka. Further they found out there as a need for a Milk Dairy.
They traveled the surrounding villages, educated the villagers about
Milk and Milk products and the benefits they would get from the Milk
Dairy.
Seeing the overwhelming response and untapped resources and the huge market
the Federation decided to setup the Milk Union in 1984, known as the Further in 1988,
the Raipur Dairy and Chilling Center, setup in 1968, also came under the union. In 1989,
the training center, which was controlled by KMF, came under Dharwad Milk Union.
DMU was Rs.7 Crore Projects of which Government has Rs.2Crore of share
capital and authorized capital of DMU is Rs.5crore.

DMU formed 551 milk producer’s co-operative societies in Dharwad, Gadag,

Haveri and Uttar Kannada districts.
The prediction capacity of DMU is 2 lack liters of milk per day and also has the
capacity to produce 12 tons of milk powder, 10 tones of butter, 6 tones of ghee per
day.DMU is collecting 70thousand liters of milk per day from its societies and sells 60
thousand liters of milk per day and the remaining milk is used for producing milk
products.
FUNCTIONS OF DHARWAD MILK UNION:
One of the core function is Procurement of milk, processing it and marketing milk
and milk products, Dharwad Milk Union markets its products under brand name of
“Nandini”.
• The main function of DMU is to procure milk from villagers and pay them
the right price.
• To educate the villagers about milk and its quality
• To make ’Nandini’ as a part of daily life.
• To provide good quality of cattle feed, fodder, veterinary properly and in an
efficient manner.
• To see that the DCS’s are carrying out their activities properly and in an
efficient manner.
OBJECTIVES OF DHARWAD MILK UNION:
 Providing hygienic and good quality of milk to the consumers.

 To build the economic strength of the milk products in villages.
 To eliminate middlemen’s in the business so that the milk products
receive their appropriate share of bread.
 To educate the villages about the adulteration of milk and its harmful
effect on the body.
 To see that every citizen becomes healthy by consuming good quality
of milk.
 To make villagers self-viable and build self image.
 DHARWAD MILK UNION
STATUS A Co-operative society registered under the Co-operative

Act 1959.
NATURE OF Procuring & Marketing of Milk Production & Sale of Milk
BUSINESS Products.
SHARE CAPITAL 3 Crores approx
PLALNT CAPACITY 2 Lakh lites/day
Milk Powder 12 MT/Day
Butter 6MT/Day
Ghee 6MT/Day
MILK CHILLING Gadag 20.000LPD
CENTERS AND CENTERS 20.000 LPD
CAPACITY
AND CAPA
Haveri
Hirekerur 20.000LPD
Naragund 8.000 LPD
Ron 10.000LPD
Sirsi 20.000 LPD
KARWAR The milk in Bulk is sent Packing and Distribution at karwar
PACKING UNIT which supplies the need of Karwar, Gokarna,
Honnavar, Bhatkal, Murdeshwar and Goa.
PRENSE VALUE OF Collection of Milk 70.000LPD
ACTIVITY Sale of milk 60.000LPD
AREA OF Dharwad, Haveri, Gadag Uttar Kannada district
OPERATION
BOARD OF Elected Member 8
DIRECTORS EX-Officers 5
By Govt. 3
TOTAL WORKERS 339 Workers
LOCATION Lakamanahalli Industrial Area, Dharwad.
DEPARTMENT 9
BRAND NAME NANDINI
PROCUCTS MILK:Toned Milk, Standard Milk, Shubham Milk.
MILK PRODUCTS:
Butter, Ghee, Curd, Lassi, Paneer, Milk Powder
CO-OPERATIVE 460 Societies
SOCIETIVE AT
VILLAGE LEVEL
PROCESS AT DHARWAD MILK UNION:

The milk collected at DCS’s ( District Co-operative Society ) is brought to the

center thought carries trucks etc. the quality and quantity of milk bought is checked at the
Reception center by a supervisor.
A sample of milk is taken and is tested in a laboratory for fat content, Solid Not fat
(SNF) acidity etc.
As the milk is at room temperature is to be brought down to 40 c to 50 c. so that it

may check the growth of bacteria. To ensure this milk is passed through a chilling
chamber where the milk is chilled. Its temperature is bought down and then the milk is
stored in a tank called as ’Row Milk Tank’.
Row Milk or Unpasteurized milk:
Most milk on the market is pasteurized (heat treated then cooled). Milk that
hasn’t been through this process should be avoided. While pasteurization reduces
the amount of some vitamins, such as vitamin C, it also kills bacteria.
Unpasteurized milk is a health hazard because of the dangers of bacterial diseases.
From this tank milk is pumped to a pasteurizing cell where the milk is heated up to 720 c
and 15 seconds, so that all the bacteria and microorganisms may be killed and then the milk is
simultaneously cooled to 40 C to 5o C and is store in a ‘Pasteurized Milk Tank’ From here the
milk is separated according to the requirement of production of different types of milk and the
remaining milk is used for manufacturing milk products.
Pasteurization milk:
Pasteurization is a process in which the milk is heated till 75 degree Celsius and the milk
is exposed to this temperature for about 16 seconds and then the milk is suddenly cooled to 4
degree Celsius. This process is carried out to destroy all the pathogenic bacteria that are present
in raw milk. Pasteurization is a very costly process and it requires the installation of very costly
machines.
WORKFLOW MODEL. (END TO END)

Production process has the following work flow model:

PROCUCT PROFILE
KMF, Dharwad product the following milk and Milk Products.
TONED MILK:
Karnataka’s most favorite milk. Nadine Toned Fresh and pure milk
containing 3.0% FAT and 8.5% SNF, Available in 500ml and 11tr packs.
SHUBHAM:
Buffalo’s milk, 100% pure pasteurized processed and packed hygienically,
this milk has 5%fat and 9%snf. Available in 5ooml and 1ltr, and also Available
in 5trs packs for marriages, and other functions.
CURD:
Nandini curd made from pure milk, it’s thick delicious
Giving you all the goodness of homemade curds. Available in 200gms and
500gms sachet.
MILK POWDER:
Enjoy the taste of pure milk! Skimmed milk powder made form pure
milk, processed and packed hygienically. Available in 100gms, 200mgs,
500gms, 1kg& 25kg Pack.
BUTTER:
Rich, smooth and delicious. Nandini butter is made out of fresh
pasteurized cream, rich taste, smooth texture and the rich purity of cow’s milk
makes any preparation a delicious treat. Available in 100gms(salted), 200gms
and 500gms cartons both salted and unsalted.
PEDA :
No matter what you ate celebrating! Made from pure milk, Nandini pada
is a delicious treat for the family. It will be store at room temperature
approximately 7days. Available in 250gms pack containing 10pieces each.
GHEE:
A state of purity, Nandini ghee made from pure butter.
It is fresh and pure with a delicious flavor, hygienically manufactured and
packed in a special pack to retain the goodness of pure ghee. Shelf life of 6
months at ambient temperature. Available in 200ml, 500ml, 1000ml sachets,
51trs tins and 15kegs tins.
The milk produced here is differentiated by the content of fat and SNF
TYPE FAT SNF

3.1% 8.5%
Toned Milk
4.5% 9%
Standard Milk
6% 9%
Subham Milk
5.1% 9%
Full Cream Milk
He below table gives a brief idea of the milk products, their fat SNF, moisture
Content:
FAT SNF MOISTURE
PRODUCT
83% 1% 16%
Butter
99.8% - 0.2%
Ghee
Panner 20% 30% 50%
ADMINISTRATION DEPARTMENT
The Administration Department controls the overall functioning of the organization. The
organization consists of the following three levels.
• Managerial cadre includes Managing Director, Deputy Manager, and

Assistance Manager.
• Supervisory level included technical officers and supervisors.
• Worker level includes labors helpers.
PURCHASE DEPARTMENT:
It is a sub-department, which comes under Finance Department. The main work of this
department is to purchase various materials required by different department. After ascertaining

the stock position by stores department and indent is sent by different department duly approved
by the Managing Director. This department act to purchase materials.
It also maintains records of all the suppliers calls for Tenders, quotations etc. Quotations
with lowest rate are sanctioned. Purchase up to 50,000, then the approval of Managing Director.
QUALITY CONTROL DEPARTMENT:
In DMU, at every stage, care is taken to ensure that the customer gets the product, which
have a very high quality. Hence there is a separate department called Quality Department.
Where the quality testing is done. There is a separate laboratory for this. Quality control is very
essential as to maintain the freshness of the milk. All the containers, pipes and other equipments
are washed with hot water before starting off with new production. There are many tests
conducted here. The packed milk we get will have undergone 3 quality tests. First test is done
on raw milk, whicget from chilling center. Next before standardization and the last test before
packing. The other tests conducted are:
TEST REASON
Should be below 5 degrees

Temperature
Clot on Boiling If mill curdles soon after billing milk is rejected
Acidity Test To test the extent of acidity
Alcohol Test To check the heat stability of milk
Lactometer To check the density of milk
Fat test Percentage of fat determined
SNF Test Percentage of SNF determined for pricing
SNF=CLR+FAT/4
STORE DEPARTMENT
The Stores Department in DMU follows the Cordex system (Coded Control System). A
card is maintained for each item and a number is allotted. The card attached to each article
consists of amount balance, date of issue, purchase etc. This is later recorded in separated ledge
book. The inventories are of different kind ranging from mechanical, spares, packing items to
animal drugs, and stationary and veterinary drugs. There are at least 4000 different inventories.
This department has the following services:
➢ It tries to maintain maximum and minimum level of inventory

so as to avoid blockage of capital and storage.
➢ Ordinary and local available commodities are maintained at minimum possible
level.
➢ Items of urgent and not easily available are stored sufficiently for further demand.
FINISHED GOODS STORES:
This Department acts as an interface between production and Marketing Department. It

is concerned with maintenance of finishes goods connected records. It received all the finished
goods and issued the stock to marketing department as per indents. It ensures that the goods are
maintained properly with respect to quality
Accounts are maintained and daily and daily and monthly report is submitted to the
production. Marketing and Finance Departments. As the products as perishable First-In-first-
Out method of inventory is followed.
FINANCE DEPARTMENT:
This Department is responsible for keeping all the inward and outward flow of money of
union. It prepares budget every year and financial rules for receipts all payments are framed.
The functions of these departments are:
➢ To prepare monthly accounts (Receipts and payment P & I
Account and Balance Sheet).
➢ To prepare quarterly financial statement.
➢ To prepare integrated business plan.
➢ To prepare year ending financial statements.
➢ To get accounts audited from statutory books of accounts.
DMU Follows to types of auditing:

1. Pre-Audit System – done by Finance and Account Department every year.
2. Statutory System –Done by Private charted accountants every year.
CANTEEN:
There is a Canteen in the premise itself. The employees are provided lunch, Tea etc., at
reasonable rates. The Canteen is handled by the Canteen-In charge.
TIME KEEPER:
This Department records the working hours of the employees. The time machine shows
the entry time and exit time of each employee. The workers divided into different shifts control
the working of the Department. Each employee is given a Punch Card,
SECURITY DEPARTMENT:
Dharwad Milk occupies 25 acres of land the whole premise is been guarded by the
security personnel. The security people work in three shifts. All the vehicles are checked before

entering the premise. The departments is also maintains separate registers like store-in Register,
Attendance register etc.
SKILLS:
The skills here refers too the various skills the workers have here the workers are further
divided into three categories. This first category contains the people who are in the top-
management level the second category consists of the supervisor’s office assistants etc. The
third category consists of the supervisor’s office assistants etc. The third category consists of the
workers at the operational.
The first category consist of the people who are in the decision making process in KMF
these people are highly qualified few Deputy Managers are to industries like IRMA, Anand dairy
for Training.
The second category is related to office work and fieldwork. These people are also
trained in computer Applications, secretarial skills, accounting skills etc.
The third level people consist of the workers who are actually into the operation these
people are also trained into fields like checking the quality of milk processing packing etc.
TRAINING SYSTEM
The Union emphasizes on training the employees. Most of the training given to the
employees here are On-the-Job training and few Off-the-Job Training.
➢ Procurement and Technical Input Training (NDDB)

➢ PG Diploma in Rural Management
➢ Basic Computer Applications.
➢ Data Base Administrator
➢ Finance Training for non-Finance Officer
➢ Co-Operative management Training Programs
➢ Clean Milk Production Training
STYLES:
A) DMU has follows Top to Bottom or Top down style system.

B) The Styles of the organization is said to follow the participative type that is the
management cadre follow the participative type of administration. The fact is that for a
manufacturing firm like the KMF, Dharwad this type of administration is necessary.
The Indicators of the Style are:
• Follows Orders, rules and procedure

• Is always Reliable, Dependable
• Watches Details\Prefers to write out Communications
• Is Rational, Logical, Self-Controlled, Fair and Firm.
Decision making parameter for day to day operations.
The marketing department provides information to production department regarding daily

requirements of the sale of the milk and milk products based on the marketing demand, later the
production department will take the decision about production activities.
STRATEGIES
The Dharwad Milk Union has the following set of strategy, which will be formulated
event year. The present year has the following strategies. The strategies are formulated with the
help of KMF and NDDB an the union members. Below are the strategies set for this year.
SRTAGETIES OF THE MARKETING DEPARTMENT:
➢ Visit to all roots of individual points by going in a root distribution

vehicle for contact with all agents.
➢ Aims to conduct 5 Consumer Awareness Program and various
Seminars.
➢ Aims at conducting agents’ meetings.
➢ Aims at setting 10 Exclusive NANDINI Milk Parlors.
➢ Aiming to set up new sales promotional and advertisement activities.
➢ Women association programs.
➢ Joining with other programs.
Strategy Implementation system:
Marketing strategy like sales promotional and advertisement activities

of DMU are as follows.
 Press advertisements
 Hoardings
 Wall paintings
 Rental for KSRTC Buses
 Leaf lets
 Banners
 Vehicles paintings and own hoarding paintings
 Pole ads and Flute boards
 Rate display boards
 Milk carry bags
 Calendar and greetings
 Exhibition, drawing and consumer mela.

INVENTORY CONTROL SYSTEM:
DMU has follows inventory control system like, FIFO System (First In First Out
System). It means milk which is procured first which is sent first to production process
immediately.
Staff:
The staff deals with the various personnel Policies followed by the Organization. Below
are given the personnel policies followed by the Organization.
Personnel policies:
There are around 339 employees working in Dharwad Milk Union. There are
various policies followed by the Union. The Human Resource Department is the in Dharwad
Milk Union Works as a sub Department of Administration Department.
Recruitment & selection:
Due to registration, termination, retirement and transfers, in the concerned department

head will give the manpower requirement along with the job description according the HR
department arranges for recruitment.
The manpower sourcing is done through advertisement, manpower consultant,

employment exchanges and personnel reference and available data bank.
Promotion and transfer:
Promotion is solely on the basis of sensitivity and experience. Transfers are always
accompanied by promotions.
Induction:
After an employee is employed in DMU, he\she has to be made familiar to the union and
also known the objective, value, functions and the operations. This helps the employee to
interact with senior staff members from various departments.
SALARIES AND EMPLOYEE BENEFITS:

Gross salary:
A regular staff member in the Union will have a gross salary consisting of Basic salary,
Dearness Allowance, CCA, House Rent Allowance, and Conveyance Allowance. There are
special benefits given to few employees, like:
Shift allowance:

There are separate allowances given to employees working in different shift like:
• First shift Allowance
• Second shift Allowance
• Third shift Allowance
Heat allowance:
Separate allowance is given to those workers working near boilers and other equipments.
Cold allowance:
Separate allowance is given to workers working in Defreeze or cold storage. Further

there is Uniform code for every employee. The Union provides 2 pair of uniforms to the
employees every year
House interest:
The employee working in the union can take a loan from other external sources and the
Union will pay half the interest on the capital per month.
Other benefits:
Canteen subsidy, Festival Advance, medical Allowance, surrender Leave.
SHARED VALUES:
These shared values include the mission and vision of the organization. It also includes
objective values. Environment Policies etc. KMF, Dharwad has the mission to provide a
lucrative market for farmers to sell their milk and to provide best milk to urban customers.
Its Vision is to produce more milk and milk Products in the forth-Coming years. KMF,
Dharwad also follows environment Policies. The plant doesn’t pollute the environment. The
organization has its own Effluent Treatment Plant in its own Premises. The Effluents are
properly dumped so that on environment hazards occurs.
STRUCTURE:
a. Organization structure

b. Sub-structure of various departments and their functions:
Procurement and input department

(structure)
The Union carries on procurement by setting up-operative societies at village level. Later
milk is collected in the Chilling Center. Milk collected from the milk center, is first tested there
are milk-testing equipments for this purpose. Then a survey on availability of transportation
facilities and productive capacity of villages are conducted. If the marketable surplus is more
than 150liters per day, a society is formed; further 10promeoters are selected from the village
and are given the responsibility of collecting the capital for the society by selling shares.
Procurement is done twice a day and payment is made on the basis of percentage of the content
and SNF in the milk.
After this, Milk is sent to Union else chilling center, whichever is near. At the chilling
center, milk is chilled up to 4degree Celsius. Later this chilled milk is sent to Union in Insulated
Tankers for further processing. The main function of this department is to procure milk different
areas throughout the year. The main function of P & I Department is to organize, supervise and
operate village dairy co-operative societies and to procure more milk from village societies.
Other services provided are:
• Veterinary services to keep up the good heath of cattle through

-Regular health Camps
Emergency service round the clock
First aid, Vaccination, Infertility Camp, Fodder
• Artificial Insemination facility for improvement of cattle breeds.
• Facilitating Training Programs regarding management of cattle
• Supply of Fodder to cattle.
VISION OF THE DHARWAD MILK UNION:
➢ Cleanliness in the Production House.

➢ Total quality maintenance and making of Brand awareness.

➢ In the union Discipline is maintained.

➢ Co-operation with other milk union and the sub unions.
➢ Transparency in the processing.
➢ Co-operative free of politics.
➢ Respective each other opinion ideas and feelings.
MISSION STATEMENT OF DHARWAD MILK UNION:
Dharwad milk Union is commuted to provide maximum possible price for

the milk supplied by its members and provided necessary inputs for the milk
production while ensuring economic viability of the union and also committed to
provide quality milk products to consumer and image as one of the most milk
union of the co-operative dairy industry in the country. At DMU we Endeavour to
satisfy the taste and nutritional requirements of the customers. Through excellence
in marketing by DMU committed team, DMU are committed to offering quality
products that provide best value for money.
QUALITY POLICY OF DHARWAD MILK UNION:

To ensure pure, hygienic milk and milk products through continuous
improvement of quality standards.
DMU has got ”ENERGY SAVING” award for the production activities
IN Achievement Category.
FUTURE GROWTH AND PROSPECTUS OF DHARWAD MILK

UNION:
Procuring and selling 1 lack letters per day.

Preparing for ISO-9001 certification.
Marketing quality improvement.

Developing HACCP- hazards analysis and Critical Control Points.

Getting export grade milk powder.
OWNERSHIP PATTERN:
DMU builds and runs under the co-operative institutions such as
 District Co-operative Society.(DCS)

 National Dairy Development Board.(NDDB)
INFRASTRUCTURAL FACILITIES:
Infrastructural facilities of DMU are as follows.
➢ Security facilities.
➢ Canteen facilities.
➢ Shifts facilities-3shifts per day.
➢ Heat allowance.
➢ Cold allowance.
DEPARTMENTS OF DHARWAD MILK UNION:
1. Purchasing Department.
2. Quality Control Department.
3. Production Department.
4. Procurement and Input Department.
5. Store Department.
6. Finished good and materials storage department.
7. Sales and Marketing Department.
8. Finance and Accounts Department.
9. Administration Department.
INPUT REQUIRED PER DAY:

 Milk procurement up to 70,000 liters.

 5 to 6 lakh liters of water.
 10,000 units of electricity.
 4 to 5 tons of coal.
 Generator in case of electricity failure and manpower.
COMPETITORS OF INFORMATION:
DMU has various competitors in the milk products market such as
✔ Sri Krishna
✔ Arokya
✔ Spurthi
✔ Datta
✔ Bharath Dairy
✔ Ram Rahim
✔ Gopal
✔ And the local milk suppliers
STRENGTHS OF KMF:
➢ Nandini enjoys good image.
➢ Wide distribution network leads to regular and timely supply.
➢ Milk processed is local milk, which reduces the transportation cost.
➢ It enjoys highest market shares in the packed milk segment.
WEAKNESSES OF KMF:
➢ Poor retail serving and consumer grievance handling.
➢ Recurring quality problem.
➢ Lowest paying brand i.e. commission given by the company is less compared to
other brands.
➢ Inadequate sales promotional activity. Due to bad smell that persists causes low
sales.
OPPORTUNITIES:
➢ There is scope for developing in new area.
➢ Availability of buffalo milk-improves market milk quality.
➢ Predominant of loose milk segment-divide appropriate strategies.
THREATS:
➢ No entry barriers for private players.
➢ Low level of consumer awareness.
➢ Persuade benefits of competing brand.
THE DISTRIBUTION CHANNELS OF THE DHARWAD CO-OP MILK

PRODUCER’S SOCIETIES’ UNION LTD.
The channel is well planned to suit the milk and milk products which perishes very
quickly.
ROLE OF TRANSPORTERS IN THE MARKETING CHANNEL:
Transporters play a very big role in all the channels. The milk union has made around 64
routes to cover all the 4 districts. Transportation is outsourced to private parties. Those with
goods vehicle can participate in the tender process. Tenders are called once in every 2 years. The
person whoever wants to operate in a particular route has to bid for that route. The person who
quotes the lowest rate per kilometer for that routs is allowed to take the transportation work for
that route. The goods vehicles are loaded in the dispatch dock in the milk union and sent to the
locations. The transporters deliver the goods while going on their assigned routes to the agents,
parlor owners, ATM centers, Day counters according to the instructions given by the marketing
department and while returning back they collect the money and milk trays and return to the
union. The milk union does not give goods on credit. Payment has to be made on the day on
which the goods are delivered to them. The transporters come back to the union and deposit their
collection in the cash counter of the milk union.
Dispatch dock
Dharwad Hubli Gadag
Karwar Haveri

WE CAN BROADLY CLASSIFY THE MARKETING SYSTEM INTO 4 CHANNELS:
1. Agency/ Agents.
The channel is as shown above. The agents are located in almost all the areas. They
distribute the milk and other products especially in the morning. There are 646 agents who cover
all the 4 districts. The Agents will have to give the indents to the marketing department as per the
requirement as per the time notified by the marketing department. The dispatch section will load
the transport vehicles with all the products as per the indent. Now once when the goods are
loaded it becomes the responsibility of the transporters to transfer the products to the concerned
agents.
The Agents can also operate through these above shown channels. They can put their
products in the retail shops such as provisional stores, bakeries, etc and share the retail margin
with them. They can also make home delivery by hiring delivery boys.
2. Day counters.
The channel is as shown above. They cover all the parts of the 4 districts. There are
around 254 day counters in 4 districts. These are the shop owners such as of provisional stores,
bakeries, etc who sell milk along with the other products they sell in their shops.
The shop keepers will have to give the indents to the marketing department as per the
requirement as per the time notified by the marketing department. The dispatch section will load
the transport vehicles with all the products as per the indent. Now once when the goods are

loaded it becomes the responsibility of the transporters to transfer the products to the concerned
agents.
3. MILK PARLORS
The channel is as shown above. They are located in all the major educational institutes,
Government hospitals, Courts, Bus stops etc in all the 4 districts. The Milk union takes the
required permission from these institutes to set up the milk parlors and set up the shops. These
are given to the people who are interested in managing them. The interested people will have to
participate in the bidding process called by the milk union. The bidder who quotes high rent will
be given permission to manage these parlors. He will have to pay the rent monthly as per the rate
quoted by him. The condition by the Milk union is that the Parlor will have to sell only the
products of KMF. The decoration, maintenance etc. regarding parlors is taken care by the
marketing department of milk union. No other products are allowed to sell. What ever the retail
margin he gets is his profit. The Parlor owners will have to give the indents to the marketing
department as per the requirement as per the time notified by the marketing department. The
dispatch section will load the transport vehicles with all the products as per the indent. Now once
when the goods are loaded it becomes the responsibility of the transporters to transfer the
products to the concerned Parlor owners.
4. ALL TIME MILK CENTERS.
The channel is as shown above. They are located in all the major locations of the city.
They are called as ALL TIME MILK CENTERS. The person whoever is interested to set up
the ATM center has to search for such busy locations and contact the milk union with the
proposal to start such centers. The milk unions marketing people will survey the area and
give the permission to start such centers. A major part of the rent is paid by the milk union.
The union also pays a major part of electricity charges. The condition for the ATM owners is
that they should sell only KMFs products. No other products are allowed to sell. What ever
the retail margin he gets is his profit. The ATM owners will have to give the indents to the
marketing department as per the requirement as per the time notified by the marketing
department. The dispatch section will load the transport vehicles with all the products as per
the indent. Now once when the goods are loaded it becomes the responsibility of the
transporters to transfer the products to the concerned Parlor owners.

Milk Procurement (TKGPD)

Year Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Avg
1987- 2125 1834 2120 1980 2406 3161 6089 5282 4653
41647 51219 50190 36635
88 6 9 2 7 8 6 3 9 8
1988- 2938 2924 2824 2681 2645 3308 7695 6512 5675
42977 43513 37077 41302
89 2 1 6 3 7 3 0 9 5
1989- 2840 2403 2350 2313 2574 3087 6259 5645 5191
39473 45302 42114 37792
90 7 1 3 2 0 6 7 3 4
1990- 2871 2655 3002 3185 3402 4129 6570 5540 4951
49014 55932 59140 43931
91 9 2 7 2 3 6 7 0 4
1991- 4550 4188 4660 5111 4846 5271 6476 5691 5220
60694 63207 61366 53786
92 9 1 8 8 2 0 0 1 1
1992- 4508 4583 5046 5436 5717 6649 9222 8469 7897
77531 83025 90415 68857
93 9 4 1 5 3 2 6 7 7
1993- 7315 6578 7160 7202 6863 6967 8301 7194 6470
77110 87168 83891 74059
94 3 2 2 8 6 0 8 7 0
1994- 6076 5675 5431 4831 4976 5138 6306 5443 4827
62303 73842 71014 57852
95 4 6 3 2 3 5 6 0 1
1995- 6709 3875 3609 3341 3959 4881 5648 4876 4301
58330 68447 65406 50351
96 6 3 4 7 3 4 3 9 5
1996- 3999 3611 3870 4447 4751 5535 6410 5713 5165
65324 77061 72314 54146
97 5 2 4 4 8 7 6 4 6
1997- 4596 3983 3882 4334 4525 5414 8485 7409 6625
64305 77424 84221 59877
98 7 6 4 5 4 4 9 4 3
1998- 5782 5480 5393 5553 5832 6553 7288 6410 6631
72830 85620 81773 65790
99 0 9 7 6 4 1 3 3 1
1999- 5448 5365 5665 5341 5301 5802 6167 5577 5142
64414 75783 70608 59078
00 0 8 9 2 9 5 0 9 8
2000- 4586 4754 4804 4978 5278 6020 6577 5862 5592
69520 82200 74931 59229
01 8 3 7 3 1 0 7 7 5
2001- 5208 5141 5037 5042 5248 6104 7309 6690 6079
77987 86527 77947 63406
02 9 9 2 3 9 3 7 7 7
2002- 5445 5009 5530 6221 5838 6492 65865 73829 67078 6677 5984 5534 61162

03 6 4 0 9 0 0 5 0 6
2003- 5022 4823 4321 4278 4351 4992 7142 6903 6677
55421 69333 68689 56548
04 4 1 9 0 7 0 5 9 5
2004- 6117 6016 6522 6825 6469 6881 6869 6751 6515
66851
05 5 0 0 1 0 9 74759 69291 68477 7 1 8
2005- 6445 6429 6909 7410 7897 9088 10365 11251 10347 9114 8016 7552
84025
06 7 7 6 9 2 4 1 9 9 3 0 8
2006- 6823 6293 6766 7406 7241 7576 7614 7199 6704
74110
07 9 2 5 8 6 3 83033 88497 81517 9 1 7
2007- 5938 5827 5735 6103 6453 6936 7200 6801 6175
68043
08 0 2 2 8 1 2 78763 84826 81216 6 4 6
2008- 6749 7319 7251 6540 5962 6960 8147 7313 7162
72364
09 6 5 6 5 8 9 75705 79246 79336 0 5 3
2009- 7251 7274
72632
10 8 6
DHARWAD MILK UNION LTD.,

Milk Sales
Year Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Avg
1987- 3058 3167 3234 3715 3984 4184 4019 4108 4081 4252 4514 4689
39176
88 7 2 6 1 9 0 4 2 9 6 6 5
1988- 4850 5099 4955 4869 5484 5533 5111 5231 5832 5369 5625 5685
53039
89 7 0 0 2 0 3 4 5 7 2 8 4
1989- 5949 6314 6032 6285 6335 6309 6132 6184 6203 6294 6867 6338
62705
90 8 4 4 6 2 3 1 1 5 4 5 2
1990- 6916 6781 6529 6458 6473 6476 6264 6319 6385 6335 6257 6473
64728
91 8 2 9 7 9 8 4 7 1 7 8 1
1991- 6594 5914 5918 6069 5555 5987 6140 6393 6345 6143 6240 6009
61094
92 4 8 7 5 0 9 8 7 1 0 4 0
1992- 5428 5243 5632 5760 5631 5533 5147 4995 4949 4987 5177 5438
53271
93 8 8 6 6 3 3 4 1 1 9 4 2
1993- 5634 5923 5762 5607 5392 5361 5109 5204 5246 5189 5345 5450
54358
94 3 9 9 1 8 0 9 8 9 8 7 2
1994- 5347 5573 5431 5326 5284 5351 5204 5369 5334 5250 5293 5560
53607
95 8 6 1 2 9 3 3 8 6 8 6 3
1995- 5492 5572 5222 5084 5382 5496 5300 5416 5360 5404 5727 5671
54276
96 1 5 9 5 6 1 1 1 5 9 9 3
1996- 6077 6216 5967 5902 5925 5823 4988 4877 4744 4608 4697 5094
54105
97 5 6 4 8 9 8 7 7 4 4 7 7
1997- 4638 4817 4802 4874 5032 5326 5293 5190 4828 5082 4877 4943
49756
98 2 8 5 6 7 4 5 1 1 6 4 6
1998- 4942 4493 4997 4951 5007 5028 4826 4842 4950 5142 4874 5207
49387
99 4 6 3 6 7 9 4 0 9 3 2 2
1999- 5300 5251 5233 5245 5322 5297 5250 5196 5292 5444 5459 5706
53334
00 8 2 1 5 7 2 8 7 7 9 2 4
2000- 5836 5890 5894 5878 6079 6001 5846 5802 5881 5905 5593 5635
58555
01 0 9 3 4 3 4 7 3 0 4 6 3
2001- 5518 5654 5439 5414 5421 5268 5089 5065 5259 5153 5390 5419
53518
02 7 8 1 6 3 6 4 8 4 8 4 0
2002- 5518 5451 5821 5205 5199 5280 5253 5303 5487 5371 5615 5633
53762
03 7 4 9 5 1 6 1 0 9 2 5 3

2003- 5816 5943 5807 5634 5645 5457 5429 5583 5425 5248 5159 5288
55366
04 2 5 5 7 9 1 1 3 8 2 7 4
2004- 5381 5282 5073 4966 4966 5003 4866 5134 5111 5164 5199 5320
51224
05 7 6 1 2 3 0 0 3 3 6 3 9
2005- 5525 5631 5435 5331 5260 5267 5188 5289 5168 5160 5422 5531
53510
06 6 2 7 4 2 0 4 5 9 2 1 5
2006- 5212 5338 5162 5139 5241 5252 5298 5197 5218 5354 5450 5534
52832
07 7 6 1 0 4 0 1 6 2 7 1 2
2007- 5871 5936 5764 5735 5802 5777 5859 5996 5888 5783 5931 6053
58668
08 8 3 2 5 4 7 6 6 9 5 1 6
2008- 6178 6008 5818 5979 6197 6320 6418 6445 6638 6504 6902 6990
63670
09 1 4 6 6 8 9 5 9 2 9 9 0
2009- 7135 7404
72702
10 8 6
Dharwad Co-operative Milk Producers Union Ltd., Dharwad.

Product sales statement during 2008-09
Cum.
Total
April- June- August- Sept- March- Sales
08 May-08 08 July-08 08 08 Oct-08 Nov-08 Dec-08 Feb-09 09 2008-09
Product Name Total Total Total Total Total Total Total Total Total Total Total Total
Curds 200 Gm 29543 15532 19145 23753
(Pkts) 0 305427 7 163341 165151 1 264127 7 241731 245860 311756 2808926
Curds 500 Gm
(Pkts) 84808 73585 34412 41370 43912 45958 56717 54560 59159 57144 74955 675065
Bulk Curds in Kgs 27885 18638 85175 114351 88634 91710 21104 82061 88310 88607 89905 869214
Pot Curds (250 gm
Pots) 24897 26786 16292 9243 9195 8871 13222 12734 15067 19843 26400 198721
Tetra SFM 200
Ml(Pkts) 7424 5168 1320 2087 779 972 1350 6344 5157 5883 3651 46000
Tetra B Milk 200
Ml(Pkts) 0 0 0 0 0 0 0 0 0 0 0 0
200 Ml Sweet
Lassi(Pkts) 45043 40683 8987 7710 6826 10140 22518 24388 17522 35130 51623 291531
200 Ml Massala
Lassi(Pkts) 83287 70401 10878 7901 8195 19448 27423 22231 23401 65086 106543 470273
200 Ml FM
Sachets(Pkts) 1000 200 0 0 1200 0 0 125 0 0 0 2525
200 Ml SFM Bottles 11746 12499 5200 3548 4852 4500 9985 0 0 10900 11898 82928
Cream in Kgs 0 0 0 0 0 0 0 0 0 0 0 0.00
Kunda 45 30 117 445.25 398.5 408.75 453.25 260 334.75 240 203.25 3247.25
Khova in Kgs 634 117 128 182.50 209 157.5 254 300.75 471.25 373.5 314 3299.75
Badam Powder
200 Gm(in Kgs) 143 97 103.6 112.20 119.2 121.6 119.8 134.4 170.2 144.4 149.2 1584.20
Badam Powder
500 Gm(in Kgs) 4 5.5 9.50
Badam Powder 10
Gm(in Kgs) 15 11 13 14.00 15 10 19 14 27 16 13 187.00
200 Gm Jamoon
Mix(in Kgs) 51.8 33.8 41 36.40 47 57.6 30.4 75.8 77.4 75.6 55 645.40
Mysore Pak 250
Gm(in Kgs) 116.75 127.75 111.75 169.75 120 114.75 120 205.25 253 220.25 152.5 1842.50
Bulk Paneer 980.3 870.25 674 623.00 693.5 615.5 1010.25 1255 1628.5 1049 1199.5 11764.80
Paneer 200 Gm (in
Kgs) 150 250.6 237.8 251.00 179.4 240.4 60 265.8 208.4 226.4 254 2409.20
250 Gms Dwd
Peda(in Kgs) 14448 14840.8 16469 15800.25 14047 13132 15267.3 11912 13093.3 11430.3 13780.3 167841.25

Butter 10 gm pack-
kgs 305 275 343 249.00 182 861 352 61 283 358 205 3505.00
Butter 100 gm
pack-kgs 306.6 748.2 2562 267.20 180.1 571.9 29.9 402.1 485.2 1200.8 188.3 8195.70
Butter 500 gm U/S
pack-kgs 4447 9888.5 9027.5 6371.00 5448.5 4948 4757 3337 4513.0 10851 5676.5 73446.50
Butter 500 gm S
pack-kgs 0 2792 4210 2825.00 1748.5 6402.5 1083.5 1436 6581.5 979.5 1448.5 34584.50
Ghee 1000 Ml-
LTRS 5972 1561 965 942.00 1421 1044 1630 167 0 909 2 15236.00
Ghee 500 Ml-LTRS 2542.5 2328 3232 2059.00 2915.5 2324.5 2768.5 686.5 1347.5 2381.5 1659.5 26654.00
Ghee 200 Ml-LTRS 1992.8 1258.6 2997.4 1877.60 1576.2 1415.6 1847.8 474.2 313.6 977.8 1105.2 16564.20
Ghee 15 Kg Tin-
Kgs 495 525 600 945.00 420 0 30 345 195 240 75 3945.00
Ghee in Bulk 0 0 0 0.00 0 0 0 0 0 0 0 0.00
SMP 1 Kg Pack 1301 215 0 1946.00 473 584 1069 680 605 575 628 8587.00
SMP 25 Kg 0 400 275 175.00 0 25 200 25 0 0 0 1100.00
SMP Sweep 0 0 1850.00
Address Dharwad District Co-operative Milk Producers' Societies'

Union Ltd
Product Dairy, Lakkammanahalli Industrial Area
DHARWAD - 580 004. Karnataka
Phone 0836-2467603 / 2468380 / 2467643
Fax 0836-2468268
E-mail dharwarnin@satyam.net.in

METHODOLOGY:
Collection of data and interpretation:

Principles of marketing or marketing research cannot be accurately applied to daily
usable consumer product like milk. It has wide fluctuations to demand movement, and
consumer’s choice because customer prefers milk and not a particular brand in time of need.
This means that the consumer should have total brand awareness to stick up to a popular
brand. This has an impact on dealers and retailers also.
The brand and its products are first segmented their market to satisfy the demand of
consumers who always need a change in their consumption of milk. The basic benefits are
gender and the income groups but market is not segmented as per the segmentation done by the
company because consumers of milk don’t go for a particular brand for particular reason.
Location : Hubli-Dharwad cities.

Sample size : 100 respondents.
Instrument Used : Self administered questionnaire
Sampling Techniques Used :Convenient Sampling
Statistical Tool : Tables, Pie Charts and bar charts are used in Analyzing the data.
Collection of primary data:
Primary data is that type of data which includes the first hand information which is being
collected from the respondents through observation or through direct communication with
respondents in one form or another or through personal interviews.
In this research personal interviews and survey were conducted to get primary data.
The survey will be conducted in the geographical region of Hubli-Dharwad cities.

Respondent’s area was divided on the basis of geographically.
The main regions for survey were Hubli and Dharwad cities. I was divided each city into
5 sub regions which are North, South, East, West and central.
Collection of secondary data:

Secondary data means the data which have already been collected and analyzed by
someone else.
The secondary data is collected through the various sources like company’s magazine and
broachers the past projects done on the branding. The other sources are internet, pamphlets,
relevant magazines, journal et
Table # 1: Surveyed respondents genders:
Sl. No Gender No.of Respondendents Percentage

1 Male 22 22%
2 Female 78 78%
Total 100 100%
Source: Primary data
INTERPRETATION:
The table shows that in the survey the respondents are 22% males and 78%
respondents are females.
Table # 2: Age groups of the respondents:
Sl. No Age Groups No.of Respondendents Percentage

1 15-25 18 18%
2 25-35 26 26%
3 35-45 34 34%
4 45-55 14 14%
5 Above 55 8 8%
Total 100 100%
INTERPRETATION:
Above table shows that 18% of respondents are belonging to the age group
of 15-25, 26% of respondents belongs to 25-35 age group, 34% of respondents
belongs to 35-45 age group, 14% and 8% of respondents are belonging to the
respectively 45-55 and above 55 age groups.
Table # 3: Occupation of the respondents:

Sl. No Occupation No.of Respondendents Percentage
1 Students 6 6%
2 Business man 12 12%
3 Working in private 17 17%
org
4 Government job 8 8%
5 House wife 57 57%
Total 100 100%
INTERPRETATION:
It has been observed form the above table 6 respondents are belongs to
students, 12 are from business man, 17 from private organization workers, 8
respondents are government employees and major part of the respondents are
belonging target customers are housewife.
Table # 4: Rrespondents monthly income groups:

Sl. No Monthly income No.of Percentage
group Respondendents
1 Less than 10,000 19 19%
2 10,000-15,000 26 26%
3 15,000-20,000 38 38%

4 20,000-30,000 13 13%
5 Above 30,000 4 4%
Total 100 100%
INTERPRETATION:
Among the respondents surveyed, 19% of them are have income group of
the less then 10,000 rupees per month, 26% of them belongs to 10,000-15,000 per
month income group,38% and 13% of respondents are belonging to respectively to
15,000-20,000 and 20,000-30,000 per month income group and the last 4% of the
respondents are belongs to above 30,000 per month income group.
Table # 5: Rrespondents family member:

Sl. No No.of family No.of Percentage
members Respondendents
1 2 12 12%
2 3 17 17%
3 4 35 35%
4 5 23 23%
5 More than 5 13 13%
Total 100 100%
INTERPRETATION: Among the respondents surveyed, the respondents
family strength is 12% of them are have family member of the 2, 17% of them
belongs to 3 member family group,35% and 23% of respondents are belonging to
respectively to family members are 4 and 5 members group and the last 13% of the
respondents are having a more than 5 family members group.
Table # 6: Rrespondents per day consumption of milk :

Sl. No Per day consumption No.of Percentage
Respondendents
1 Less than ½ liter 8 8%
2 ½ liter 23 23%
3 1 liter 42 42%
4 2 liters 16 16%
5 More than 2 liters 11 11%

Total 100 100%
INTERPRETATION: It has been observed form the above table 8%
respondents are consumption of milk per day is less than ½ liters most of the this
group is belonging in to the 2 family members, 23% are consumption is ½ liter per
day , 42 are consume the 1 liter per day, 16% of respondents are consuming the 2
liters per day. And the 11% respondents are consuming the milk per day more than
2 liters.
Table # 7: Rrespondents presently using milk :

Sl . No Brand No.of Respondendents Percentage
1 Nandini 48 48%
2 SriKrishana 19 19%
3 Arokya 23 23%
4 Spurti 06 06%
5 Other 04 04%
(Datta,Gopal,Bharat,RamRahim
)
Total 100 100%
INTERPRETATION: Among the respondents surveyed, the respondents are
presently using their own selective brand milk. In the respondent 48% of them are
consume the presently a Nandini brand milk. And 19% of respondents are go
throw the Sri Krishana milk .23% are consume the Arokya Milk, 6% and 4%
respondents are using the respectively Spurti and other milk brand and local milk..
Table # 8: How many cunsumers are loyal to the Nandini Milk :

Sl. No Opinioun No.of Respondendents Percentage
1 Yes 43 43%
2 No 57 57%

Total 100 100%

INTERPRETATION: It has been observed form the above table The 43% of
respondents are loyal to the Nandini brand milk and the last finding the 48% of the
respondents are presently using the Nandini brand milk but among the 48% of
respondents continue or in the fetcher 5% of the respondents are not loyal to the
among the Nandini brand milk. and the remaining 57% of respondents are not
loyal to Nandini brand milk.
Table # 9:Among three brand of Nandini milk the respondents favorite brand is:
Sl. No Various brands in Nandini No.of Respondendents Percentage

1 Nandini Toned 22 22%
2 Nandini Standard 32 32%
3 Nandini Shubham 46 46%
Total 100 100%

favorite bands among three brand of Nandini milk 22% respondent say that they go
for a Nandini Toned milk, 32% of respondents are say that their favorite brand is
Nandini Standard and the remaining 46% respondents favorite brand is Nandini
Shubham.
Table # 10: Purpose of using the Nandini milk:

Sl . No Purpose No.of Respondendents Percentage

1 Direct consumption 18 18%
2 Tea/ coffee 53 53%
3 Curds 20 20%
4 Other purpose 09 09%
Total 100 100%
INTERPRETATION: It has been observed form the above table 18% respondents
are consumption purpose of using milk for the direct consumption, 53% are
consumption purpose of using milk for the Tea/ coffee , 20% are using for a curd
making and 9% of respondents are using for other propose.
Table # 11: Respondents while purchasing Milk factors are consider:

Sl . No Factors No.of Respondendents Percentage
1 Brand name 10 10%
2 Price 14 14%
3 Thickness 26 26%
4 Long shelf life 32 32%
5 Attractive packing 8 8%
6 Others (Pure, Fat content, Easy 10 10%
availibility )
Total 100 100%
are while purchasing Milk Brand name was consider, 14% are consider the Price,
26% of respondents are considering a Thickness of the milk, the meager of
respondents are wile purchasing milk they consider a Long shelf life, and 8% of
respondents are consider a Attractive packing and the remaining respondents are
10% are consider a pure, Fat contents, Easy availability..
Table # 12: Awareness of the NandiniProducts :

Sl. No Opinioun No.of Respondendents Percentage

1 Yes 94 94%
2 No 6 6%
Total 100 100%
INTERPRETATION: Among the respondents surveyed, the respondents are know
about the Nandini product are 94% of respondents are say yes and the remaining
6% of respondents are know about the Nandini milk but they don’t know about the
other Nandini products.
Table # 13: Sources are help to come to know about Nandini Products?
Sl . No Sources No.of Respondendents Percentage
1 Friends or Neighbors 19 20%
2 Agents 8 8%
3 Banners 25 27%
4 Wall painting 29 31%
5 Meadia (TV, Radio or 13 14%
News papers)
Total 94 100%
known about the Nandini products are 94% of respondents are say yes. In this
known category I Question to the respondents how to know about the Nandini
Products. The 20% of respondents are known to the friends and the Neighbor
hoods, 8% of respondents are know through to agents, 27% of respondents are
known to a banners and the reaming 31%and 14% of the respondents are
respectively know about the Nandini product through the wall painting and media.

Table # 14: Do you get above product whenever you ask in the shop?
Sl . No Opinion No.of Respondendents Percentage
1 Yes 57 61%
2 Some time Yes 20 21%
3 No 17 18%
Total 94 100%
are satisfied with a they ask in the shop for Nandini product. 21
% of consumers are some time get Nandini product in all shops and the remaining
17% of respondents are not satisfied with the marketing of Nandini product are
not get it so easily.
Table # 15: Respondents while purchasing Nandini products factors are

consider:
Sl . No Factors No.of Respondendents Percentage
1 Availability 10 10%
2 Price 14 14%
3 Taste 22 22%
4 Quality 30 30%
5 Attractive packing 8 8%
6 Adertisement 16 16%
Total 100 100%
are while purchasing Nandini Milk products availability consider, 14% are
consider the Price, 22% of respondents are considering a Test of the milk product,
the meager of 30% respondents are wile purchasing Nandini milk product they
consider a Quality , and 8% of respondents are consider a Attractive packing and
the remaining respondents are 16% are consider a Advertisements.

Table # 16s: Are you satisfied with the service given by the KMF ATM’s and
Parlor?
Sl . No Criteria No.of Respondendents Percentage
1 Highly satisfied 4 4%
2 Satisfied 27 27%
3 Neutral 47 47%
4 Dis satisfied 14 14%
5 Highly dis satisfied 8 8%
Total 100 100%
INTERPRETATION: Among the respondents surveyed, the 4% of respondents
are highly satisfied with service providing by the KMF and there ATM’s or Parlor.
The 27% of respondents are satisfied with a service given by KMF, 47% of
respondents are Neutral satisfied with a KMF service or Availability ,and 14%and
8% of the respondents are respectively Dis satisfied and Highly dis satisfied with
the service given by the KMF and their ATM’s or Parlor.
FINDINGS IN THE ORGANIZATION:
Nandini products have a good brand image in the Market.

 Pricing strategy of Nandini is appreciated by its customers.
 Proper training programs are going on from past few years.
 Trade union is in active.
 The security in the Production house and the DMU need to be improve.
 Nandini is started with customer contact programs in order to get first hand feedback
from its customer and also to improve its products.
 The various private brands have been trying to give a really tough competition by giving
the agents high trade margins.
 In the DMU the co-ordination between the subordinate is appreciable.
 DMU has a waste area of operation which is geographically spread and which leads high
procurement and distribution charges.
 Lack of consumer awareness about the wide range of products sold.
 The dealers wants only more commission because they also suffer same problem with
other brands also but they complains with us only.
 The organization is playing an important role in developing the economic viability of

the villages.
 The powder making plant has taken an vital role in Dharwad Milk Union.
 In some cases it is proven that DMU also not solved the problems on the spot because it
is not allows a single person to take decision because this is a co-operative sector.
 Another important problem is the under utilization of the resources available. The plant
capacity utilization of DMU is very less which is leading the organization to loss. The
various machineries install must be run even when quality of milk handled is less. This
adds up a huge unwanted expense to DMU.
SUGGESTIONS
➢ The retailers and dealers should be satisfied with commission and
schemes so that they can improve the sales in the market.
➢ The company should come up with new products with different
varieties and attributes to attract the customers.
➢ To advertise about all the products in the market.
➢ The organization can build good infrastructure better than these like
maintaining good garden etc.
➢ If the company wants to restart the production of “Double Toned
Milk”, firstly it has to provide sufficient knowledge and awareness
about the attributes of products as compared to others.

CONCLUSION
It was an exciting experience to me working with DMU Dharwad. From this project I
learnt about the marketing tactics used by Dharwad Milk Union.
Dharwad Milk Union is a reputed organization which has developed its goodwill in the
market to compete with other famous brands such as Sphurti, Arokya, Srikrishna etc. It has to
adopt modern technology in the production process and can do better marketing compared with
others. It has to increase the rate of commission payable to its agents or dealers or retailers.
DMU is functioning well for the social as well as economical upliftment of the rural
population.
To survive in the market the company needs to adapt an aggressive marketing policy as
of competitors.
Last but not the least I would like to conclude DMU as good organization to work as
well as to interact with people. All the workers and members of the union nicely motivated me.

The Hubli Dharwad retailers and hotel owners co-operated well and supported me in completing
and making this project a successfully.
RECOMMENDATIONS
 The retailers and dealers should be satisfied with commission schemes so that
they can improve the sales in the market.
 The company should come up with new products with different varieties and
attributes to attract the customers.
 The advertise about the entire product line in the market.
 The organization can build good infrastructure better than these like maintaining
good garden.

LEARNING EXPERIENCE GAINED IN THE KMF
1. Got complete knowledge of quality testing.

2. Method of maintaining accounts in proper manner.
3. Learnt about the marketing strategy and sales promotion.
4. To know about the types of milk and how can it will be stored in the cold storage.
5. Proper manner of maintaining punch cards and every time alert security centers.
6. Learnt about the distribution channels it contains wide area of networking
also speed of operation.


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Karnataka Milk Federation, Dharwad

KARNATAKA COOPERATIVE MILK PRODUCERS' FEDERATION LIMITED (KMF)

Dharwad District Co-operative Milk Producers' Societies' Union Ltd

Kousali Institute of Management Studies, Dharwad. 1

FINDINGS IN THE ORGANIZATION:

 Lack of consumer awareness about the wide range of products sold.

Milk: India's Number One Farm Commodity

Milk contains many different nutrients

Modified milks explained:

There are many types of milks on the market, including:

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NUTRITIVE VALUE OF MILK

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Niacin (mg) 0.1 0.1

India: World's Largest Milk Producer

Achievements of dairy co-operatives:

The start of a revolution:

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NATIONAL DAIRY DEVELOPMENT BOARD: -

➢ To sponsor, promote, manage, acquire, construct or control any plant or

Services rendered by NDDB:

NDDB provide the following services.

. Planning dairy and rural development projects.

KARNATAKA COOPERATIVE MILK PRODUCERS' FEDERATION

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To impart training, institutes at Bangalore and

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THE MILK UNION:

UNITS OF KARNATAKA MILK FEDERATION:

1. Mother Dairy, Yelahanka, Bangaloru.

CO-0PRATIVE MILK PRODUCERS SOCITIES UNIONS:

1. Bangaloru Milk Union

9. Kolar Milk Union

➢ Co-ordination of activities between the unions.

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MEMBERS IN DISTRICT CO-OPERATIVE SOCIETY:

BUSINESS STRATEGY OF NANDINI:

➢ Genetic up-gradation of livestock

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➢ Veterinary health cover to all animals – Regular and Emergency Services

FEEDS AND FODDER:

➢ Fodder crop seeds supplied to farmers.

CLEAN MILK PRODUCTION:

➢ Training producers on hygienic management, milking methods and handling of

CLEAN MILK PRODUCTION IMPLEMENTED:

➢ Number of Milk Unions involved – 11

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MILK PROCUREMENT AND SALES:

THE PRODUCTS OF KMF:

Milk Toned Milk, Full Cream Milk, Good Life, Standardized

Turnover Rs.Crores 3135.00

PERSPECTIVE PLAN 2010:

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further strengthening the Dairy Development Activities in Karnataka with an

Dharwad District Co-operative Milk

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A DMU group of experienced officers, appointed by the

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DMU formed 551 milk producer’s co-operative societies in Dharwad, Gadag,

FUNCTIONS OF DHARWAD MILK UNION:

OBJECTIVES OF DHARWAD MILK UNION:

 Providing hygienic and good quality of milk to the consumers.